Upon passing a Toaster repair skill check on a Broken toaster at the workbench found on the bottom floor of the Guardian Citadel, you will receive a loot bag. It doesn't matter which Broken toaster you use first, the first one gives loot bag 1, the second, loot bag 2, etc. But wait, there are 4 different loot bags? True enough, a fourth bag can be acquired using the Disk Swapping technique. You will also get a Toaster.

In Wasteland 2, broken toasters can be found hidden around Arizona and California. Successfully using the Toaster repair skill on these will gain you items, which can often be used to gain unique rewards from characters. Party member Ralphy starts off with level 5 Toaster repair skill.